economy
Which retailers win and lose from high gas prices? Deutsche Bank sorts it out
Companies indexed to higher-income customers are more likely to weather higher gas prices, the firm found.
TL;DR
- Rising fuel prices, particularly diesel, are creating cost pressures for U.S. household budgets and the retail sector.
- Companies with higher-income customer bases, like Ulta Beauty and Costco, have historically shown a positive correlation between oil prices and same-store sales.
- Lower-income focused retailers, such as dollar stores, tend to show a negative correlation with gas prices as consumers reduce purchases.
- Companies with significant revenue exposure to Europe, the Middle East, and Africa, like Birkenstock, may face additional challenges.
- Many global brands have substantial finished goods inventory, which could mitigate near-term margin pressures from rising commodity costs.